January 29March
19, 2025
Federal
Reserve issues FOMC statement
For
release at 2:00 p.m. ESTEDT
Recent
indicators suggest that economic activity has continued to expand at a solid
pace. The unemployment rate has stabilized at a low level in recent months, and
labor market conditions remain solid. Inflation remains somewhat elevated.
The
Committee seeks to achieve maximum employment and inflation at the rate of 2
percent over the longer run. The Committee judges thatUncertainty
around the risks to achieving
its employment and inflation goals are roughly in balance. The economic
outlook is
uncertain, and thehas increased. The
Committee is attentive to the risks to both sides of its dual mandate.
In
support of its goals, the Committee decided to maintain the target range for
the federal funds rate at 4-1/4 to 4-1/2 percent. In considering the extent and
timing of additional adjustments to the target range for the federal funds
rate, the Committee will carefully assess incoming data, the evolving outlook,
and the balance of risks. The Committee will continue reducing its holdings of
Treasury securities and agency debt and agency mortgage‑backed securities. Beginning
in April, the Committee will slow the pace of decline of its securities
holdings by reducing the monthly redemption cap on Treasury securities from $25
billion to $5 billion. The Committee will maintain the monthly redemption cap
on agency debt and agency mortgage-backed securities at $35 billion. The
Committee is strongly committed to supporting maximum employment and returning
inflation to its 2 percent objective.
In
assessing the appropriate stance of monetary policy, the Committee will
continue to monitor the implications of incoming information for the economic
outlook. The Committee would be prepared to adjust the stance of monetary
policy as appropriate if risks emerge that could impede the attainment of the
Committee’s goals. The Committee’s assessments will take into account a wide
range of information, including readings on labor market conditions, inflation
pressures and inflation expectations, and financial and international
developments.
Voting
for the monetary policy action were Jerome H. Powell, Chair; John C. Williams,
Vice Chair; Michael S. Barr; Michelle W. Bowman; Susan M. Collins; Lisa D.
Cook; Austan D. Goolsbee; Philip N. Jefferson; Adriana D. Kugler; Alberto G.
Musalem; and Jeffrey R. Schmid; and .
Voting against this action was Christopher J. Waller,
who supported no change for the federal funds target range but preferred to
continue the current pace of decline in securities holdings.
This article was written by Greg Michalowski at www.forexlive.com.